“By 2030, only 2 adults will be taking care of 1 elderly person.” That is an astonishing fact reported by Straits Times. What does this mean to you?
It means that you need to set aside enough money for long-term care if you don’t want to end up in a nursing home at Johor Bahru.
We all will become old and “disabled” someday. However, being disabled does not necessarily mean that you lose your arms or legs,  it could be that you are not able to perform certain daily activities due to illness or accident. And that can cause hardship for both you and your family.
How can eldershield upgrade such as Aviva MyCare and MyCare plus help in this case? What are the differences between these three plans?
Basic Eldershield
The government has foreseen that and they have set up Eldershield for everybody who is above age 40. In a nutshell, Eldershield helps relieve some of these hardships by providing monthly payouts to help cover long-term care. It is payable if the patient cannot perform 3 out of 6 of Activities of Daily Living (ADLs). You can read more about Eldershield and the definitions of ADLs here.
While short-term coverage can offer critical assistance, associated costs will continue well after a policy’s benefits have expired. That is why you need to upgrade your eldershield to have a better peace of mind.
Aviva MyCare and MyCare Plus
Eldershield only pays up to $400 a month for 6 years. You should upgrade it to Aviva MyCare or Aviva MyCare Plus with higher payouts and a longer payout period. The main benefits of the upgrade are:
- You can increase the monthly payout up to $5,000
- You can extend the cover into lifetime benefits instead of 6 years.
- You can claim if the insured cannot perform 2 out of 6 ADLs instead of the usual 3 ADLs under MyCare Plus
- Your premium does not increase with age
- You can choose a limited premium payment term
- You can use up to $600 Medisave per year to pay for the premium.
- You can use your Medisave to fund the premium for your spouse, parents or grandparents.
Difference between Eldershield, Aviva MyCare and MyCare Plus
Aviva MyCare and MyCare Plus are customizable, you can choose the best coverage options that are right for you.
How do Aviva MyCare and MyCare Plus claim work
Consider the case of a 42-year-old Mr Lim, who is an ElderShield400 policyholder and bought MyCare or MyCare Plus with S$1,000 monthly benefit payable for a lifetime.
Claim under Aviva MyCare
If Mr Lim has a stroke and is paralysed from the neck down. He is certified to have failed more than 3 ADL.
- With ElderShield, he is able to claim $400 per month for up to 6 years.
- With MyCare he is able to enhance his payouts to a bigger amount and for a longer period.
Mr Lim’s payout is outlined below.
| First 72 months | 73rd month onwards for up to a lifetime | |
|---|---|---|
| Â From ElderShield400 | Â S$400 per month | S$0 per month |
| Â From MyCare | S$600 per month | S$1,000 per month |
| Â Total | S$1,000 per month | Â S$1,000 per month |
To illustrate it in a diagram,
Claim under Aviva MyCare Plus
If Mr Lim is certified by the doctor to have failed 2 ADL.
- He is unable to claim under ElderShield.
- But with MyCare Plus, he could make a claim.
| First 72 months | 73rd month onwards for up to a lifetime | |
|---|---|---|
| Â From ElderShield400 | S$0 per month | S$0 per month |
| Â From MyCare Plus | S$600 per month | S$1,000 per month |
| Â Total | S$600 per month | Â S$1,000 per month |
There’s extra cash too
In both cases, Mr Lim also receives a 1-time lump sum payout of $1,800 from MyCare or MyCare Plus.
If he has at least one child aged 21 years or below at the point of claim, he’ll also receive a Dependent Care Benefit of $200/month for up to 36 months.
My recent application to upgrade my eldershield was rejected citing due to my build. I am not sure if it is referring to the fact that I am underweight. but does that means overweight ppl will het rejected as well?
Hi, Mrs Lee
Yes, the insurer may reject overweight or underweight applicants.
If I make a claim under my other personal insurance which also covers similar disabilities, will I still be able to make the claims under Aviva for this MyCare?
Hi, Kah Fei
Generally you should be able to claim both.
I was told that once a person reaches that stage, he/she has only about 3-5 years of life span, therefore the payout received is actually much lower than the total premiums. I would like to hear your view about this.
Hi, Janice
That is a valid concern. Insurer does offer an option of 12 years payout period and lifetime payout period and it is a personal choice. However, in either case, it is highly unlikely the payout is less than the premium.
Secondly, being a long term care insurance, the main objective is not to pay a lump sum, but prolonged needs of recovery. That is why I find the rehabilitation benefit is important.
Thirdly, with advance of medical technology, the chance for us to survive a severe disability is higher and higher in the future. Who knows how long a person can survive 20 years later? That is the reason why Eldershield is insufficient as it stops at age 65.
Hope this helps.
I would like to upgrade my policy(eldershield and my care).